Pacific Life Insurance Company Review
An In-depth Pacific Life Insurance Company review
A lot of consumers are familiar with the name ‘Pacific Life’ because of its famous logo – that of a breaching whale. It has been the centerpiece of the marketing efforts of the company and has featured on television ads and magazines for years. The company isn’t scared to promote its brand through major media advertisements and commercials, which has turned it into a household name in the United States. There is no denying that Pacific Life is one of the biggest insurance companies in the country and has been in the industry for more than 150 years.
The company has over 3,000 employees and its headquarters are in Newport Beach, California. The first ever offering by Pacific Life was in 1885 when it began its accident insurance. It was in 1906 that Pacific Life really spread its wings when it joined with Conservative Life from Los Angeles, California. It is a Fortune 500 company and has assets over $1.4 billion in insurance and annuity benefits, with operating revenues in excess of $7 billion!
Pacific Life offers an extensive range of financial products, mutual funds, pension plans, annuities, and insurance products to businesses and individuals. In terms of sales, it is ranked as the 4th largest life insurance company in the United States, and the company motto is, “The Power to Help You Succeed”. Pacific Life also has subsidiary companies, which include the likes of:
- Aviation Capital Group Corp.
- Pacific Asset Management
- Pacific Life RE Limited
- Pacific Select Distributors, LLC
The company also makes generous donations regularly. It has donated over $84 million in the past 30 years to low-income communities from The Pacific Life Foundation.
When it comes to life insurance companies in the United States, they don’t come much bigger than Pacific Life. It is a financial company with an extensive array of products, which include annuities and life insurance. The company was founded by Leland Stanford, who was the founder of Stanford University and was a California governor at the time. He was also the first policyholder of the company, and the first dead benefits were paid to his wife after he passed away.
Pacific Life runs on the mutual firm model, ensuring that it is the policyholders, instead of the shareholders that own the company. Mutual insurance companies will distribute profits to policyholders in the form of reduced premiums or dividends.
Pacific Life is a giant in the life insurance industry and has accumulated a wealth of expertise encompassing over 150 years. It has dominated several areas of economic protection and growth, which include the following:
- Financial Protection
- Income for Life / Retirement Income
- Wealth Accumulation
- Wealth Preservation
Pacific Life has continued to be an industry leader when it comes to its financial products and has continued to serve the community as well. This has won the company numerous admirers and earned it several accolades and awards, which include:
- Ranked 8thin sales for life insurance
- Ranked 1st for selling universal life and indexed universal life insurance
- Ranked 16th in sales for largest fixed annuity
- Ranked 13th in sales for variable annuity
- Ranked #302 on the list of Fortune 500 companies
Pacific Life has also donated generously to numerous foundations, charities and donated $2 million to the Marine Mammal and Ocean Focused Non-Profits last year. It also donated $1 million to HomeAid of Orange County and has made donations of over $100 million to community non-profits.
The company takes its social responsibility seriously and has invested more than $4.4 billion in assets associated with socially responsible efforts in low-income and underserved communities. It has also participated in environmentally green efforts and the company has also contributed more than 10,000 employee volunteer hours for over 200 different community projects.
Pacific Life holds more than $143 billion in assets and paid out an estimate of $2.3 billion in annuity benefits and insurance in 2016. The company also had operating revenues of $9 billion, along with operating income of $868 million!
Financial Stability Ratings and Customer Service Ratings
Pacific Life has outstanding numbers when it comes to their financial strength and customer service ratings, as you would expect from a giant of the industry. They have been scored exceptionally well by every major insurance rating organization. Here is how their ratings add up:
- M. Best – A+ Superior
- Moody’s Investor Service – A1 Good
- Standard & Poor’s (S&P) – AA- Very Strong
- Fitch – A+ Strong
The Better Business Bureau also recognizes Pacific Life Insurance Company for its exceptional products and services and has given them an “A+” rating. However, Pacific Life isn’t accredited with the BBB, and there isn’t much information provided on their website about Pacific Life.
Pacific Life has made its name in the industry by offering outstanding life insurance coverage and products to everyone. The company is well known for transferring policy improvements to existing policyholders. The common improvements it passes on to existing customers include:
- 1 life insurance product received a reduced surrender charge
- 1 life insurance product reduced the mortality and expense charge
- 10 life insurance products added competitive loan provisions
- 123 in-force life insurance policy owner gains since 1985
- 19 life insurance products with the premium load reduced twice
- 27 life insurance providers with the cost of insurance (COI) improvements
- 6 products received an increase in the persistence credit
- 7 life insurance products benefitting from a reduction in deferred acquisition cost adjustment
There is an extensive array of options offered by Pacific Life in their life insurance products, which include permanent and term life insurance policy choices. The term life insurance only offers death benefit coverage without any savings build up or cash value, which makes the coverage affordable when compared to permanent life insurance.
Ø The Pacific Prime Term Plan
This is a level term life insurance policy, which provides coverage of 10, 15, 20, or 30 years. It means that during the period selected the coverage and premiums will remain level. The policyholder may access up to 75% of the death benefit from the policy if they are diagnosed with a terminal illness. It can also be converted to a permanent life insurance policy without any underwriting.
There is also an optional waiver of the premium rider that can be added to the policy based on the needs of the insurer. This benefit allows the premium to be waived from the policy if the policyholder is disabled before the age of 65.
Ø Permanent Life Insurance
Pacific Life provides a lot of options for permanent life insurance, which include cash value build up and death benefits.
Ø The Flex Protector
This is a whole life insurance policy, and the death benefit is going to be fixed here, along with the premium. The cash value will grow by the rate set by the company and the cash value can be withdrawn or borrowed depending on how the policyholder prefers it.
Ø Versa Flex Universal Life Insurance
This product offers a cash component along with death benefit protection. Universal life insurance is more flexible than whole life, and the policyholder may change the amount and timing of the premium, based on their needs. There are different death benefit options with the plan, which include:
- Necessary face amount
- Face amount plus accumulated value
- Face amount plus a sum of premiums, fewer withdrawals
The policyholder can also increase or convert their coverage without providing any insurability evidence. You can add more riders to the plan, and customize it completely to your needs, which include overload protection rider, waiver of charges rider and guaranteed insurability rider.
Ø Indexed Life Insurance
This product includes monetary value and death benefit protection, along with cash value, which relates the performance of an underlying market index.
Ø Pacific Indexed Accumulator plan
This allows you to choose several market indexes like:
- The S&P 500
- The MSCI Emerging Markets Index
- The Hang Seng Index
- The EURO STOXX 50 Index
The monetary value will be credited when the indexes have a positive return, although this will only exceed to a certain cap. If the underlying indexes don’t perform properly during that period, the principal of the policyholder will be protected, and the money value will be credited with 0% for that period. You can also add more features to the plan, to increase coverage with the Children’s Term Rider Coverage, the Annual Renewable Term Rider, and the cost-effective Additional Coverage Rider.
Apart from all the life insurance coverage options, Pacific Life is also known to provide other services and products to its customers. These include the following:
Ø Mutual Funds
These are professionally managed investments that provide diversification and liquidity. There are different choices in mutual funds, and you can find ones depending on your goals, which focus on aggressive growth opportunities, safety, income, and growth. These mutual funds may be from international and U.S. companies. Pacific Life also offers its own funds, known as the Pacific funds, which are designed for diversification, income generation, and growth.
Ø Retirement Annuities
Most people aren’t living towards their 80s and 90s, and one of the things every retiree worries is outliving their money. However, you can protect that with an annuity, which ensures that your income lasts throughout your life, irrespective of the length of time. Pacific Life provides annuity products that are tax-deferred savings vehicles and provides a steady stream of income during retirement. Annuities can also protect your money in any economic or market environment.
Ø Investment Products and Services for Businesses
Pacific Life offers the Key Man Term Life Insurance, which employers can take out for the health or life of an employee, whose overall contribution, work, knowledge, or skill is considered as indispensable or highly valuable to the company.
The Bottom Line
When you are out shopping for life insurance, there can be no denying that you will come across the name of Pacific Life Insurance. The company has been a long-standing leader in life insurance and universal life insurance, and consistently ranks among the top companies when it comes to insurance sales. They offer an extensive range of policies designed to protect policyholders and offer easy riders to cover for unexpected bumps in life and to cover your children.
The company is secure and very strong financially with a long-standing history of providing exceptional life insurance and financial products. The business model it operates under is successful, and with the speed at which the company continues to grow, it will remain at the top for a long time. There are a lot of things to like about Pacific Life and its wide range of life insurance and financial products. However, there are times when people can’t afford them, and if you are looking for products with the cheapest rates, there are other companies out there.
However, if you are looking for the best permanent life insurance products on the market, then Pacific Life has some of the best on offer in their lineup.
See our next Life Insurance Company Review: Primerica Life Insurance